You WILL get bored VERY QUICKLY converting every video file that you download to MPG1.

One of 2 options really;

1) Get a DVD player (if you havent already) that supports PROPER XVID/DIVX format playback

2) Get a tv card in your pc and run a cable from PC -> TV (dont forget audio tho)

the 2nd option is obviously better (depending on where your pc/tv is), you save on discs, time, compatibility issues etc.

Another possible option, get a cheapo laptop to sit next to the TV.